HomeMy WebLinkAboutFCS-15-060 - T15-001 Union St Maple Ave Sereda RoadStaff Report
rTC.�r R finance and Corporate Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015 -04 -27
SUBMITTED BY: Michelle Palmer - Novakovic, Director of Supply Services
519- 741 -2200 ext. 7214
PREPARED BY: Laurie Stecho, Supervisor of Purchasing
519- 741 -2200 ext. 7089
WARD(S) INVOLVED: 10
DATE OF REPORT: 2015 -04 -17
REPORT NO.: FCS -15 -060
SUBJECT: T15 -001 Union Street, Maple Avenue & Sereda Road (Lancaster
Street West to Sereda Road /Arnold Street to Union Street)
RECOMMENDATION:
That Tender T15 -001 Union Street, Maple Avenue & Sereda Road (Lancaster Street West
to Sereda Road /Arnold Street to Union Street), be awarded to G.R.T. Excavating Ltd.,
Woodstock, Ontario at their corrected and amended tendered price of $2,843,148.36,
including provisional items and contingencies of $183,170.50, plus H.S.T. of $369,609.29,
for a total of $3,212,757.65.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of infrastructure on Union Street,
Maple Avenue and Sereda Road. On Union Street and Maple Avenue, the work includes
upgrading of the existing storm, sanitary sewers and water mains, replacing existing property
services, surface work, new curb and gutter, sidewalks on both sides and a new marked bicycle
lane on Union Street (Lancaster Street to Sereda Road). Areas of sidewalk infill will be
completed on Union Street (both sides), and on Maple Avenue (east side). On Sereda Road
(from Union Street to Arnold Street) the work includes new water main installation and a new
marked bicycle lane. These improvements are being done to upgrade the existing, deteriorated
underground services and above - ground surface features, in order to prevent future system
failure.
The work will be carried out in stages; in order to carry out these improvements it will be
necessary to close these streets to through traffic. All affected property owners have been
advised of the need to close the road to through traffic. Pedestrian access will be maintained to
all properties at all times and vehicular access to properties within the construction area will be
maintained as long as possible.
The project is scheduled to begin mid -May 2015, weather permitting.
* ** This information is available in accessible formats upon request. * **
Please call 519- 741 -2345 or TTY 1- 866 - 969 -9994 for assistance.
REPORT:
Tenders were advertised publicly in the Daily Commercial News, on the City of Kitchener
website and the internet through the Ontario Public Buyers Electronic Tendering Information
System. Documents were picked up by seven (7) interested parties and by the closing date of
Thursday April 9, 2015, two (2) tenders had been received.
The tenders were reviewed by D. Hofstetter, Conestoga- Rovers & Associates (CRA), the City's
Consultant for the project and S. Shah, Design Engineer who concur with the above
recommendation.
The following tenders were received:
Corrected & Amended
Bid Price Bid Price
G.R.T. Excavating Ltd. Woodstock ON $3,307,601.91 $3,212,757.65
J. Weber Contracting Limited Breslau ON $3,611,593.00
Tenders were reviewed for mathematical errors and corrected accordingly.
As the submitted bids were above the available budget, subsequent to tender closing, a post
tender addendum was issued to the low bidder. Material quantities were reduced on two items
which did not affect the overall scope of the project nor did it change the order of the submitted
bids.
The tender prices that were received were higher than the engineer's estimate likely due to the
time of year and the saturation of work within the market. Several contractors are bidding or
working on Light Rail Transit (LRT) work and do not have capacity for other work. Conestoga
Heavy Construction Association (CHCA) members indicated that other recently tendered
projects have been experiencing higher tender prices as well. These factors also contributed to
the low number of bidders.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy framework.
The City of Kitchener's purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
1.H. -2
FINANCIAL IMPLICATIONS:
In addition to the costs anticipated in this tender, the design and implementation of these types
of projects typically involves city staff and resources from across the corporation. These costs
are included in the line item "Projected Costs: Staff Time /Permitting /Material testing ", and will
be itemized when they exceed $125,000. Included in this line item are staff time and expenses
for all city staff in support of the project such as Engineering, Kitchener Utilities, and
Transportation Planning. The line item also includes all regulatory permitting, geotechnical and
material testing, detouring and traffic control, alternate access and parking requirements and
any other miscellaneous costs. Projects utilizing in -house staff will include costs for inspection
during construction and contract administration.
The net cost for this tender (A), is fair and reasonable for a purchase of this scope but the upset
limit exceeds the budget allowance (B) provided within the budget. Additional funding for this
purchase is provided by a surplus balance from a previous phase of the project, as well as from
the Accelerated Infrastructure Replacement Program (AIRP) capital account. The amount
available in the AIRP account is sufficient to fund this transfer. There is expected to be no
surplus or deficit (E).
Tender T15 -001
Union - Maple Reconstruction
The total budget for all phases of this project is :
Estimated Cost for this Phase of Work
Tender T15 -001 costs, including HST
less: HST rebate on tender
Net Cost Being Awarded
Costs Incurred to Date
Projected Costs: Staff Time /Material Testing
Total Estimated Cost for this Phase of Work
Budget for this Phase of Work
Sanitary Utility
Storm Water Utility
Water Utility
Intensification Allowance
Total Budget for this Phase of Work
Estimated Surplus /(Deficit) for this Phase of Work (B - C)
$3,063,659.00
3,212,757.65
(319,569.73)
2,893,187.92 A
57,364.00
2,950,551.92 C
1,120,295.00
560,148.00
754, 982.00
24,600.00
2,460,025.00 B
(490,526.92) D
Transfer from Accelerated Infrastructure Replacement Program 449,893.36
Estimated Surplus /(Deficit) from previous phases 40,633.56
Total Estimated Surplus /(Deficit) 0.00 E
COMMUNITY ENGAGEMENT:
INFORM - Potential vendors are informed of bid opportunities through the public posting of bid
documents as outlined in the City's Purchasing By -Law. Vendors, local media and the general
public are informed of purchasing recommendations to Council through the public reports which
are included with the Council agenda the week prior to the Council meeting.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
I.H. - 4